A well-known investor and the CEO of Berkshire Hathaway, Warren Buffett, warned about the global U.S. currency reserve. He said the value of the U.S. dollar could change, and said the Federal Reserve should be more proactive.
On CNBC’s Squawk Box, Buffett said, “Well, if I were at the Fed, the thing I’d worry about always is, you know, you’re the reserve currency of the world. I mean, so you’ve got very smart people, very sophisticated people, the American dollar looks like nothing could happen to it. I don’t feel anything could happen to it. But if it does happen to it, I wouldn’t want the responsibility of running the Fed.”
Warren Buffett was just asked if stocks look cheaper after the worst quarterly performance in 4 years.
His answer: “No.”
“3 times since I’ve taken over Berkshire, it’s gone down more than 50%. This is nothing.”
“This is nothing to make you get excited and think there’s huge… pic.twitter.com/GT93w4DAtg
— WOLF (@WOLF_Financial) March 31, 2026
He said he does not expect any near-term change to the currency, but if it did, then it may shake the global economy. So far, governments keep the U.S. dollar as their reserve currency. They use it for investments, global trade, and finance deals.
The value of the American dollar has been volatile as it fell to its lowest point in four years. There was more than 10% decline in the value between Jan. 2025 and 2026. In March, the value of the dollar rose sharply as strikes on Iran prompted investors to move into stocks and oil.
Investors sold riskier assets and moved into the U.S. dollar. As a result, the value of the euro, sterling, and yen suffered. Last year, Buffett suggested keeping more than one currency. He noted, “It might be a good idea to own a lot of other currencies.”
Even at that time, his comments were seen as a prediction of what may happen to the U.S. Dollar. Due to economic and geopolitical uncertainty, he suggested diversifying the currency in order to deal with policy changes, inflation, and debt.
The Federal Reserve controls the supply of money and sets interest rates. This helps keep inflation stable. To continue to maintain the balance, the Fed would likely keep the rate between 3.5 to 5.75 percent.
Warren Buffett sat down with CNBC’s Becky Quick on Tuesday to discuss a new charity lunch auction with Stephen and Ayesha Curry, his current level of involvement in making investments at Berkshire Hathaway, the Epstein files and more.
Watch the full interview:… pic.twitter.com/oz6jgey3rv
— CNBC (@CNBC) March 31, 2026
Donald Trump slammed the chairman, Jerome Powell, for not bringing the rates down. He posted on his Truth Social, “Where is the Federal Reserve Chairman, Jerome ‘Too Late’ Powell, today? He should be dropping interest rates, IMMEDIATELY, not waiting for the next meeting!” Powell has said Trump’s tariffs contributed to inflation.
On the other hand, Buffett showed his concern for the inflation target of the central bank. He said, “Well, I wish they had a zero inflation target. Once you start saying you’re going to tolerate two percent, that compounds pretty dramatically over time. And you’re saying to people, if you’re getting less than two percent of your money, you’re going backwards.”
The Fed targets 2% annual inflation; however, its value in September 2025 was 3%, and came down to 2.4% in February. It rose to 3.5%–3.75% in March while rate cuts were pushed to September. Needless to say, Buffett has expressed skepticism about the Fed’s 2% inflation target.
